Aerodrome Finance/AERO#95 1

What is Aerodrome Finance (AERO)?

Aerodrome Finance (AERO) is a next‑generation automated market maker (AMM) and decentralized exchange purpose‑built to be the central liquidity hub on Base, Coinbase’s Ethereum Layer‑2 network. Launched 28 Aug 2023 by the Velodrome team, Aerodrome combines concentrated‑liquidity pools, a powerful incentive “flywheel,” and a vote‑lock (ve(3,3)) governance model that directs token emissions to the most productive liquidity pairs.

Key Features

• Multi‑AMM Architecture – Merges Uniswap V2 (x*y=k) pools, Curve‑style StableSwap, and Uniswap V3‑like concentrated liquidity under one roof.

• ve(3,3) Token Model – Lock AERO for up to four years to mint veAERO NFTs that determine weekly emission flows and capture 100 % of trading fees + external bribes.

• Liquidity Incentive Engine – Dynamic AERO emissions and protocol‑directed “AERO Fed” react to market conditions, bootstrapping depth where Base needs it most.

• Public‑Goods Alignment – 25 % of genesis voting power reserved for Ecosystem Goods to fund critical Base infrastructure.

• Seamless UI (Night Ride) – Gas‑efficient trading and LP management with built‑in veNFT marketplace.

• Security Stack – Smart contracts forked from audited Velodrome V2, with additional audits from PeckShield and BlockSec.

How Does Aerodrome Work?

1. Liquidity Provision – Users deposit token pairs into stable, volatile, or concentrated pools and receive LP tokens.

2. Emission Voting – veAERO holders vote each epoch (7 days) to allocate freshly‑minted AERO to specific pools; voters earn all pool fees and external incentives.

3. Fee Distribution – 100 % of trading fees + “bribes” (partner incentives) are routed to veAERO lockers, proportional to their vote weight.

4. AERO Flywheel – High‑fee pools attract more votes → more emissions → deeper liquidity → more volume → more fees, reinforcing growth.

5. AERO Fed – Protocol‑owned liquidity arm that deploys treasury emissions to strategic pools for ecosystem health.

Primary Use Cases

• Token Swaps – Fast, low‑slippage trades for ETH, BTC, stables, and Base ecosystem tokens.

• Liquidity Farming – Earn AERO emissions and fees by providing liquidity to incentivised pools.

• Governance Participation – Lock AERO to veAERO to steer emissions, capture fees, and shape protocol upgrades.

• Yield Stacking – Combine LP yield with external bribes or leverage positions in Base money markets.

• Protocol Bootstrapping – New Base projects can bribe veAERO holders to attract deep, sticky liquidity from day one.

What Is AERO Token?

AERO is an ERC‑20 utility token minted weekly as liquidity incentives.

• Emission Utility – Reward LPs; can be swapped, LP’d, or locked.

• Governance Path – Lock AERO (max 4 yrs) to mint transferable veAERO NFTs that grant voting power and fee share.

• Economic Alignment – All protocol revenue flows to veAERO lockers; contributors and investors must lock tokens like everyone else (no liquid allocations).

Tokenomics

• Total Supply: 500 M AERO

• Genesis veAERO: 450 M (locked allocations & airdrops)

• Initial Emissions: 10 M AERO per epoch, increasing 3 %/wk for 14 epochs, then decaying 1 %/wk.

• Distribution: • veVELO Airdrop 40 %
  • Public Goods / Ecosystem 25 %
  • Team & Contributors ≈10 % (2‑4 yr vest)
  • Protocol Grants & Partnerships ≈8 %
  • Genesis Liquidity & Treasury ≈2 %
  • Remaining allocated via ongoing emissions.

Funding History & Milestones

Aerodrome’s journey began in June 2023, when the project was announced in tandem with the Base team. By August 2023, the protocol had launched on mainnet with more than twenty ecosystem partners, distributed a veVELO airdrop, and completed its first epoch vote. Momentum accelerated in February 2024 after the Base Ecosystem Fund—managed by Coinbase Ventures—market‑acquired a substantial AERO position, helping total value locked climb past $420 million. The following month, March 2024, saw the debut of the AERO Fed, a dynamic incentive vault that deploys treasury emissions to strategic pools. In October 2024, Aerodrome integrated cbBTC, and weekly Bitcoin volume on the platform overtook WBTC trading on Ethereum mainnet.

Where to Buy AERO?

You can Buy AERO on a growing roster ofCrypto and on‑chain venues:

• Top Order‑Books (Fiat On‑Ramps): Coinbase Exchange (AERO/USD), Gate.io, Bybit, KuCoin, Bitget, HTX, and Kraken.

• Alt CEX Liquidity: LBank, MEXC, DigiFinex, XT.COM, BitMart, OrangeX, Bitvavo, BingX, Pionex, CoinEx, Hotcoin, GroveX, Ourbit, Bitunix, LATOKEN, Crypto.com Exchange.

• Decentralized Routes on Base: Native Aerodrome pools, Aerodrome SlipStream, Uniswap V3/V4 (Base), PancakeSwap V3 (Base), and related cbBTC or wstETH pair pools—check slippage before large trades.** LBank, MEXC, DigiFinex, XT.COM, BitMart, OrangeX, Bitvavo, BingX, Phemex, CoinEx, Hotcoin, GroveX, Ourbit, Bitunix, LATOKEN, Crypto.com Exchange.

• Decentralized Routes on Base: Native Aerodrome pools, Aerodrome SlipStream, Uniswap V3/V4 (Base), PancakeSwap V3 (Base), and related cbBTC or wstETH pair pools—check slippage before large trades.

Wallet Options

Base‑compatible wallets: MetaMask, Coinbase Wallet, Rabby, OKX Wallet, Trust Wallet (mobile), Ledger/Trezor via MetaMask.

Locking AERO for veAERO requires signing a smart‑contract lock transaction; veAERO NFTs can be managed or traded directly in Aerodrome’s built‑in NFT marketplace.